Former Six Flags site could become new amusement park or upscale outlet mall

The abandoned former Six Flags amusement park in eastern New Orleans could become either an upscale outlet mall or an amusement park, based on the results of a meeting Tuesday of the committee convened to decide the fate of the 150-acre site. The five-member committee met for about three hours and ultimately whittled down the original list of eight proposals to two. The outlet mall and amusement park emerged as leaders after each proposal was discussed, scored on six criteria, and ranked.

Chris Granger, The Times-PicayuneThe former Six Flags site in eastern New Orleans has been shuttered since Hurricane Katrina.

In the scoring, the most emphasis was placed on financial feasibility, financial capacity and return on investment. Those three categories combined to make up 60 percent of the final score. The other categories were quality and performance history, 15 percent; conceptual development, 10 percent; and commitment to working with disadvantaged business enterprises, 15 percent.

Many of the rejected proposals were criticized and scored low for not including viable financial plans.

"I view our charge as being very stringent and very aggressive in making sure this is a project that can get done," said Aimee Quirk, Mayor Mitch Landrieu's economic development adviser and a member of the five-person committee that is reviewing the bids. "We need to be concerned with not just that the proposal works, but that the proposer has the wherewithal to make it happen. Some of the proposals left something to be desired in terms of ability to be (financially) feasible."

The entrepreneurs behind the two proposals that did meet the committee's expectations will be called in sometime in December for interviews and a formal presentation.

The city of New Orleans has controlled the shuttered property since December 2009, when a Delaware court presiding over the bankruptcy of Six Flags Inc. agreed to allow the theme park operator to terminate its lease in exchange for cash payments to the city. Six Flags did not reopen the storm-marred park after Hurricane Katrina.

Retail idea rises to the top

The outlet mall, proposed by the team of DAG Development and Provident Realty Advisors, was the clear favorite. It generated the most discussion and the highest score, 397 out of a possible 500.

The project is a $40 million, 400,000-square-foot upscale outlet mall that contemplates a second phase that would include a theme park and entertainment district, employing 1,000 to 2,000 people initially and as many as 4,000 upon completion of the second phase. The committee seemed impressed with Provident Realty Advisors' history of retail development and with the prospect that it would bring much-needed retail to eastern New Orleans.

"They are responding to a particular need that has been articulated in the community," said Deputy Mayor and Chief of Staff Judy Reese, a committee member. "It shows what kind of partner they are likely to be, which is going to be important for whatever goes in that space."

Provident also appeared to have the strongest financial and development history, according to the committee. The Dallas company has developed several retail outlets throughout Texas and is responsible for the Marquis Apartments in New Orleans. According to the proposal, New Orleans-based DAG Developers would act as the local operator.

"Their strength is that they have properties that you can go out and touch and see," said Justin Augustine, a committee member and CEO of the New Orleans Regional Transit Authority.

The mall project was ranked first by each of the five committee members except Deputy Mayor of Facilities, Infrastructure and Community Development Cedric Grant. Grant put the proposal second behind the amusement park because he said he was concerned that the project would require too great an investment from the city. Although Provident and DAG have the capacity to invest, based on the financial statements they presented, they did not indicate that they intended to do so, suggesting instead that they may seek incentives and other help from the city.

"I'm interested in return on investment for the city, who will require the least and provide the most," Grant said.

Reviving an amusement park

The amusement park, proposed by RCS Entertainment, is a $200 million plan from a 5-year old Houston company. The first phase of the project calls for keeping the park's existing inventory of rides and reopening the space as an amusement park. In a second phase, RCS said it would expand the property to include a water park and hotel. The first phase of development would produce 2,000 jobs, according to the company's proposal. The proposal received a score of 348 out of 500.

RCS, which is developing its first amusement park in the Houston area, according to its website, said it envisions its development in New Orleans to be on the order of Busch Gardens. The company is seeking a long-term lease agreement that would require it to pay the city $1 million a year to use the site and to give the city $1 from every ticket sold. The company estimates that it will generate $17.8 million in tax revenue each year.

One drawback is that RCS has never actually developed an amusement park, Quirk said. But the committee was satisfied that the company's principals, particularly its president and chief executive officer, had sufficient experience in the industry to merit an in-person interview. RCS also presented with its proposal a commitment letter from a private investment group for the full $200 million project.

The committee also was warm to the idea of another amusement park.

"It's consistent with what was there before," Quirk said. "That's a positive."

Other proposals fall flat

The committee was decidedly less impressed with the other six proposals. Although they were able to take as many as five to the next round of evaluation, none rose to a level that merited further consideration, Quirk said.

"We had two strong proposals that stood out from the rest," Quirk said. "I think there's a natural break."

The six proposals rejected:

A $3 million eco-park proposed by the Al Philips business coalition that would have included a staging ground for outdoor events but would host just three events per year. Committee members didn't consider that an efficient use for the space and wondered how the company would make money, given that the property still would have to be maintained year round. With projected employment of only up to 10 people, it also didn't provide the economic impact the city is hoping for.

A theme park, resort and soundstage proposed by Louisiana Heritage Resort. While the committee members liked the $100 million theme park and 600-room resort in theory, the plan failed because the proposal did not include a detailed plan for financial feasibility. "It's aspirational," said Scott Hutcheson, the mayor's adviser on the cultural economy and a committee member. "I don't know that it's realistic."

An electric power plant proposed by PackAert LLC. The $500 million pricetag, regulatory hurdles and a lack of details felled the proposal.

A back lot for the film industry and a theme park proposed by The Paidia Company. The committee found the company's request for a $2 million per year long-term lease deal to be paid off in part with sales tax revenue peculiar and unlikely to pass muster in the Legislature.

An adventure and water park proposed by JWM Ventures. Hutcheson said the proposal seemed "like a draft with a lot of question marks."

A park with theme lands serving the food and promoting the culture of various countries proposed by Powell Commodity generated the shortest discussion and was dismissed as "pie in the sky" because the two-page proposal included no financial information.